Golden Morning News SEC Considers ProShares Ethereum ETF Application as Optimism Mainnet Proof of Stake System Goes Live

Top Stories
▌SEC Considers ProShares’ Ethereum ETF Application
In a document dated June 10, the U.S. Securities and Exchange Commission (SEC) announced that the New York Stock Exchange (NYSE) Arca has filed a rule change to allow the listing and trading of ProShares Ethereum ETF shares. The SEC stated that it will seek public opinion on the ETF application within 21 days after publication in the Federal Register, giving the SEC 45 days to approve, reject, or extend the decision timeline.
On May 23, the U.S. Securities and Exchange Commission officially approved 19b-4 applications submitted by eight asset management companies, marking their first application to list and trade spot Ethereum ETFs on U.S. exchanges. The final approval requires the SEC to sign the S-1 registration statement for the spot ETH ETF before trading can officially commence – a process that may take several months, but some experts predict it may be completed sometime in July.
▌Optimism Mainnet “Fraud Proof” System Goes Live
The second-layer blockchain Optimism aims to help Ethereum users transact quickly and reduce costs. It has been the foundation of some big-name companies in the blockchain space, but one issue has plagued Optimism for years. Up until now, Optimism’s security design has lacked a core feature: “fraud proofs.” On Monday, this long-awaited technology finally went live on the Optimism mainnet.
Fraud proofs are designed to ensure the integrity of Optimism-based Layer-2 chains. They help prevent operators of Layer-2 chains from transmitting inaccurate transaction data to Ethereum’s Layer-1 transaction ledger and support the decentralized withdrawal mechanism of Layer-2 chains.
Market Update
As of the time of writing, according to Coingecko data:
BTC recent trading price is $69,493.28, with a daily change of -0.2%;
ETH recent trading price is $3,666.59, with a daily change of -1.1%;
BNB recent trading price is $624.76, with a daily change of -7.3%;
SOL recent trading price is $158.94, with a daily change of -2.0%;
DOGE recent trading price is $0.1448, with a daily change of -1.4%;
XPR recent trading price is $0.4967, with a daily change of -0.4%.
Policy
▌EU Vote Could Lead to More Innovation-Friendly Policy Framework
The voting of 720 Members of the European Parliament (MEPs) began last week, and the results have been gradually announced since Sunday from the 27 countries. Elected members include the rapporteurs of the Markets in Crypto-Assets (MiCA) legislative report Stefan Berger, Ondrej Kovarik, and former chair of the Economic and Monetary Affairs Committee (ECON) Irene Tingali.
Mark Foster, the EU Policy Lead of the Crypto Innovation Committee, stated that the election results indicate a slight shift to the right, coupled with increased strength in the European People’s Party and weakened Green Party influence, which could lead to a more innovation-focused policy framework in the EU over the next five years.
While cryptocurrency is not a key theme in the EU elections, the future of cryptocurrencies will depend on the lawmakers who can propose legislation. Some members of the crypto community are seeking more blockchain policies, but European Parliament members cannot introduce new legislation – they can only formulate and decide on it. New MEPs will be elected after the EU elections.
▌Senate Bill Demands Crypto Industry Transformation to Identify User Identities, Unlikelihood of Bill Passing
According to sources, a part of a bill in the Senate aimed at providing funding for U.S. intelligence activities has borrowed from a previous bill aimed at preventing the use of cryptocurrencies to support terrorism. This provision may require a significant transformation in the crypto industry to identify user identities to prevent sanctions that could stifle digital asset operations. If the bill becomes law, it will be the most significant crypto policy passed by the U.S. to date – with its pros and cons still sparking significant controversy.
Discussions indicate that this matter is still under discussion as the spending bill progresses, awaiting broader scrutiny in the Senate, possibly to be included in the National Defense Authorization Act (NDAA) that must be passed. However, industry insiders believe the chances of the bill surviving are slim.
Blockchain Applications
▌Starknet Core Developers Launch Catnet to Test Bitcoin Circle STARK Verifier Deployment
Starknet core developers announced the launch of Catnet on the X platform, a custom Bitcoin signet enabling OP_CAT to test the deployment of the Bitcoin Circle STARK Verifier. Abdel added that the faucet is coming soon.
Cryptocurrency
▌Data: Bitcoin’s Annual Average Return Rate Reaches about 104%
Since its first trade in 2011, Bitcoin has seen an annual average return rate of about 104%, surpassing Warren Buffett’s investment portfolio and the return rate of the U.S. stock market. According to Lazy Portfolio ETF data, Warren Buffett’s investment portfolio has achieved a compound annual growth rate of 10.03% over the past 30 years, with a standard deviation of 13.67%. In comparison, the return offered by a U.S. stock portfolio is roughly similar but with a higher standard deviation. In contrast, Bitcoin has seen an average annual return rate of about 104% since its first trade in 2011.
▌Bitcoin Mining Firms’ May Production Decreases by about 40% Month-on-Month
According to Farside Investors data, major Bitcoin mining firms have reported their production data for May 2024. May marked the first full month post-halving, with production decreasing by about 40% month-on-month.
▌Bitwise: Ethereum Q1 Revenue Surpasses Robinhood, Etsy, Yelp, and Reddit
Bitwise research analyst Ryan Rasmussen stated on social media that the revenue generated by crypto applications built on Ethereum is comparable to some publicly listed companies. In the first quarter of 2024, Ethereum’s revenue exceeded that of Robinhood, Etsy, Yelp, and Reddit.
▌U.S. Spot Bitcoin ETF Adds 1,805 Bitcoins on June 10
According to Lookonchain monitoring, data from the U.S. Spot Bitcoin ETF on June 10 shows: BlackRock added 2,437 Bitcoins valued at approximately $170.24 million, bringing their total holdings to 304,977 Bitcoins valued at around $21.3 billion; Grayscale reduced holdings by 545 Bitcoins valued at about $38 million, with their total holdings now at 285,106 Bitcoins valued at approximately $19.92 billion; a total of 1,805 Bitcoins valued at around $1.2612 billion were added by 9 Bitcoin ETFs.
▌Greeks.live: Overall Positive Sentiment in the Cryptocurrency Market
Greeks.live researcher Adam highlighted a focus this week on the U.S. CPI data on June 12, the Fed interest rate decision on June 13, and the Bank of Japan’s rate decision on June 14. He mentioned that the volatility brought by the ETH ETF has completely subsided, with continuous inflows into BTCETFs, leading to an overall positive sentiment in the cryptocurrency market. In the short term, he suggests selecting options with lower IV for cost-effective purchases of weekly call options.
Important Economic Developments
▌Probability of the Fed Maintaining Interest Rates Unchanged this Week at 99.4%
According to CME’s “Fed Watch”: The probability of the Fed maintaining interest rates unchanged in June is 99.4%, with a 0.6% probability of a 25-basis-point rate cut. The probability of the Fed keeping rates unchanged until August is 91.1%, with an 8.8% cumulative probability of a 25-basis-point rate cut and a 0.1% cumulative probability of a 50-basis-point rate cut.
Golden Encyclopedia
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What is Optimism?
Optimism is a Layer 2 project compatible with Ethereum, aiming to address Ethereum’s scalability issues while functioning similarly to the Ethereum blockchain. Optimism is an Ethereum Layer 2 scalability solution led by the Optimism Collective, an organization composed of a specialized community with a vision to build a fair internet. The organization covers all branches of Optimism, such as OP Labs, OP Chains, and the Optimism Foundation.